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What is licensing? Why do firms sometimes choose it as a means of entering a foreign market?

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问题 What is licensing? Why do firms sometimes choose it as a means of entering a foreign market?
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答案In licensing, a firm leases the right to use its intellectual property to a firm in another country. Firms choose licensing because they do not have to make cash payments to start business, and can simply receive income in the form of royalty. Besides, they can benefit from locational advantages of foreign operation without any obligations in ownership or management.
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